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英国论文代写范文-Lululemon’s generic business level strategy

2017-09-12 | 来源:51due教员组 | 类别:更多范文

本篇英国论文代写范文-Lululemon’s generic business level strategy讲了行业Lululemon竞争是体育市场的一小部分,女性瑜伽服装具有优质的品质,在这里,波特的五个力量用于分析鲁勒勒姆的外部环境,新进入者的威胁。 Lululemon的快速发展吸引了很多公司进入这个新市场。本篇英国论文代写由51due代写平台整理,供大家参考阅读。


1st question:

Lululemon’s generic business level strategy is believed to be focused differentiation. This is because Lulumelon’s products are high-quality yoga apparel with a premium price. 

Target customers are females between the ages of 15 and 65 with higher income. 

Lululemon satisfies customers’ needs by designing and providing products according to customers’ preference and ensuring the highest quality of the products. 

Lululemon focuses on developing employees, ensure employees reflect company’s mission and vision. Through each employee in the stores, Lululemon has built close relationships with its customers (or what they called “guest”), making it easier to get feedback from customers. This will help them understand the customers’ needs, then meet those needs. They even set up their clothes-folding tables next to the fitting rooms to eavesdrop any customers’ preference and complaints. Lululemon has a special marketing strategy called “grassroots marketing”. It employs ambassadors to give feedback through testing products, providing a higher quality of the products. 

2nd question:

The industry Lululemon is competing is a small segment of the sports market, female yoga apparel with premium quality. Here, Porter’s five forces are used to analyzed Lululemon’s external environment. First, the threat of new entrants. The rapid development of Lululemon has attracted a lot of companies to enter into this new market. Those companies include some leading global organizations like Nike and Adidas, who both have sufficient capacity to enter this new market. Those new entrants will eventually decrease the profitability Lululemon had before. Second, the threat of substitutes. Part of the reason that Lululemon can have such success is because it can provide high-quality products while satisfying customer’s needs. Once the market has very similar products as Lulumelon’s, it will largely influence Lulumelon’s revenue. For example, the brand “Lucy” under VF corporation provides a similar styling of Lulumelon’s yoga apparel for much lower price. The more similar products in the market, the more difficult for Lululemon’s operation. Third, the bargaining power of buyers. The issue of bargaining power of buyers does not seem to be a problem for Lululemon. This is because Lululemon focuses on high-income female. As long as the products still satisfy customers’ needs and remain high quality, premium price will not be a much concern to Lululemon’s customers. Fourth, the bargaining power of suppliers. According to the case, Lululemon does not have its own manufacturing facilities. All of its products are produced by outside manufacturers. The dependence of suppliers may increase the bargaining power of suppliers. The high standards Lululemon asked about suppliers also give away more bargaining power to suppliers. The increase in expenditure in suppliers will definitely reduce Lululemon’s profitability and impact its development. Finally, the industry rivalry. Competition between the industry is relatively strong, as the entrance of leading global companies and other retailers. They will increase a lot of pressure on Lululemon. But since Lululemon is the first company stepped into this industry, and maintained a good relationship with customers, Lululemon is believed to be more competitive than other companies at this stage. 

3rd question:

There are a few advantages of Lululemon’s relatively small size. First is its ability to provide better services to customers. For example, Lululemon’s employees are expected to reflect the company’s vision and mission through hiring process and training, so that employees can provide a better service to customers. However, such requirements may not be fully met in large organizations, because the more employees a company has, the more difficult to manage them. Small size company usually is in charge of the founder, and founder get more flexibility when making decisions. This is a good thing when the founder knows exactly what the company is heading. But in large companies, founders may not have such power as they did in small size company. They are not the only ones to make business decisions, decisions are made after hours and hours meetings, and probably not the way founders want. Even though founders are 100% sure of a decision is good for a company, they still need to convince the broad.

However, there are also some disadvantages of Lululemon’s relatively small size. First of all, small size may limit Lululemon’s further development. Unlike large size company, small size company may have limited capital to invest in potential projects. For example, Nike and Adidas both have sufficient capacity to invest in female yoga apparel, but Lululemon may not have sufficient capacity to invest in other sports market like Nike and Adidas did. Another disadvantage may be its underdeveloped internal control. Unlike large size company, small size company may not have a completed internal control system. Internal control is very important for a company’s operation. Without a strong internal control system, small size company may not be able to work as efficient as a large company.

4th question:

If Lululemon decides to expand into Europe and Asia, it may face various challenges to some extent. In terms of pricing, according to the case, Lululemon charges a premium price on its products. This was a success because Lululemon was the first company stepped into this new market. Now since other companies are doing this business in the market with a lower price, Lululemon may find it difficult to attract new customers at new market. But if Lululemon willing to lower its price to attract more customers in Europe and Asia, it may hurt its existing business in the United States. Because customers in the United States may think Lululemon has different strategies to different customers, which may drive some customers to Lululemon’s competitors. As Europe and Asia will be entirely new markets for Lululemon, it will take a long time before it can build brand awareness in new markets. Business will not be good for Lululemon when the brand awareness is low. Especially when there are large global companies or local reliable companies doing the same businesses. To build brand awareness will not be an easy and cost-friendly thing to do. Since Lululemon needs to build its brand awareness, how to position its products will also be a challenge. To continue positioning its products to high differentiation and high price may not success in new markets, because of the same reason discussed above in terms of pricing. Lululemon may want to adjust its position if it wants to entry into a bigger market. 

There are also differences in culture practices between the Europe and Asia market, makes it difficult for Lululemon to enter both markets. For example, the informal rules and law regulations may be different in these two markets. China, as one of the largest market in Asia, will be a primarily market for Lululemon to enter in order to expand the business into Asia. But as people may know, a litter “guanxi” (or to say relationship) is needed to run business in China. This means a company needs to build a good relationship with local government authorities and competitive forces in order to smooth things out. Pork and Luo (2001) analyze “guanxi” in China, find out that “guanxi” do good on market expansion and competitive position of companies. But this will not be the same case in Europe market, and Lululemon will need to do business differently according to local’s culture practice. One more thing needed to be concerned is that customers’ requirements in those two markets. People in these two markets may have different money spending habits. It is easy to understand when people staying poor for a long time won’t spend too much on some fancy sports suit, and that may be the case in some Asia markets. For an extremely case, it won’t be possible to sell high-priced yoga apparel well in some Asia countries where people only can afford to basic living expenditures. Therefore, expanding the business into these two market will not be a one-step move, it takes long time and investment to make it happen. As far as I am concerned, Lululemon could plan to enter Europe market first, because compared to Asia market, Europe market is more similar to Lululemon's existing market. Also, entry into both markets together may be too costly to Lululemon, considering its small size. However, Lululemon will need a global strategy to be a multi-national company. My suggestion will be remaining current styling of products, creating new lines of products at the same time to target more customers. Try to create some new products with lower price, but not too low to fail company’s mission and vision. At the meantime, good marketing strategies should be implemented in the new market, to increase the brand awareness and attract potential customers. 

5th question:

one ethical issue Lululemon faced over the last years is its misleading advertisements. Lululemon advertised its products with some medicinal properties (including stress relief) which they do not have. These advertisements may attract more people to buy Lululemon’s products. But once those customers find out what Lululemon promised in advertisements is a lie, Lululemon will lose those customers eventually. Besides, the law will not tolerate such faking promotion, and as mentioned in the case, Canada’s Competiton Bureau ordered Lululemon to remove those labeling. In the end, fake advertisements only lower customers’ recognition, which will be a consequence that any company would never want to have. It will lose customers’ loyalty, and damage the brand. Lululemon should never do such misleading advertisements to increase revenue. It only has bad effects in long term. To increase revenue, Lululemon should always improve its services to customers, instead of involving into such ethical issue. 


Another ethical issue of Lululemon is it may overhear too much from customers and violate customers’ privacy. As discussed in the case, Lululemon satisfied customers needs and preference by building good relationships with customers. In order to know what customers really want, Lululemon trained its employees to eavesdrop on its customers. Lululemon also set up its clothes-folding tables next to the fitting rooms to overhear customers’ complaints. This, to some extent, violated customers’ privacy, customers may not be happy knowing that someone is eavesdropping them when they are in the fitting rooms. It may make customers uncomfortable, and some may not want to shop at Lululemon again. I understand it is one of the ways for Lululemon knows more about customers in order to provide better services, but this is not right. Lululemon could create more appropriate ways to get feedback from customers. For example, Lululemon could train employees more skills to communicate with customers and find out their needs in very short time. Or, Lululemon could build a system where regular feedback is collected from customers spontaneously under stimulation of small award.

Reference list: 

Park, S.H. and Luo, Y., 2001. Guanxi and organizational dynamics: Organizational networking in Chinese firms. Strategic management journal, 22(5), pp.455-477.


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